Woodside Petroleum Ltd| Overview 11
The acquisition in February of an increased interest in the
Scarborough field was the first in a series of significant
developments throughout the year in our plans to upgrade
and connect our existing facilities and bring new resources
through them.
Importantly, we have already struck agreements for the sale of
gas from our facilities to Australian customers. We anticipate
rising global demand for gas, but we are also committed to
providing local supply.
After increasing our equity in Scarborough to 75%, we assumed
operatorship and have in early 2019 awarded engineering
contracts for the upstream development. We have also selected
an expansion concept for the Pluto LNG Plant and begun
engineering work on train 2.
At the same time, we have progressed our proposal to process
the Browse resources through the North West Shelf Project’s
Karratha Gas Plant, achieving a preliminary tolling agreement
between the two joint ventures that will enable the ecient
development of new resources through existing infrastructure.
This avoids costly duplication of facilities and benefits
all stakeholders.
We are building on our strengths and finding new and better
ways of doing things in both our commercial partnerships and
our operations. This includes exploring options on the Burrup
Peninsula for integrating gas-fired power with solar power to
supply reliable power to local industry.
We think gas has a big role to play as the world strives to
reduce emissions while extending access to modern energy.
Gas has a lower carbon intensity than other fossil fuels.
The emissions released in producing natural gas are more than
oset by those avoided when it displaces higher-emissions
fuels. As a fuel for reliable and readily dispatchable power
generation, gas is the ideal partner for renewables.
Experienced companies like ours need to be part of the
response to climate change. Our contribution includes
managing our own emissions and developing new markets for
LNG to displace higher-emissions fuels, including for remote
power generation in northern Western Australia and as a fuel
for marine and road transport.
It was a significant year for Woodside internationally, as we
transitioned to operator of SNE, Senegal’s first oshore oil
development. The joint venture is targeting first oil in 2022 and
has commenced FEED activities and secured approval of the
Environmental and Social Impact Assessment.
Our exploration program in Myanmar made good progress,
with two further gas discoveries enhancing the commercial
prospects of the acreage.
Woodside is on the cusp of some great opportunities in both
our Australian and international operations, as we deliver our
growth plans.
Our sta are working hard to realise those opportunities and
I thank them for their eorts in 2018 and in the years to come
as we set the company up for a bright future.
Peter Coleman
Chief Executive Ocer and Managing Director
14 February 2019
Our growth plans will more than
double Woodside’s equity LNG
production by 2027 and deliver
significant benefits to shareholders
and to the broader community.